Chapter 10 of 42 · Shata Rudra Samhita · Overall chapter 239 of 464
Nrisimha's Conduct
After briefly noting Virabhadra as an avatara already told in full elsewhere, Nandi recounts Vishnu's own Narasimha avatara - killing Hiranyakashipu after his austerity-won boon from Brahma - and the problem that follows: Narasimha's rage does not subside even after the kill, forcing the terrified gods to appeal to Shiva for a way to pacify him.
Nandishvara said
The destroyer of Daksha's sacrifice, the lord Virabhadra, should be known as an avatara of Shiva, the supreme self. I told you all about his deeds when I spoke of Sati, and since you have heard them many times I will not go into detail. Out of affection for you I will now tell you of Lord Shankara's avatara called Shardula, or Sharabha. For the gods' welfare Sadashiva took the extraordinary divine form of Sharabha, blazing like fire. For the benefit of virtuous devotees Shiva has taken innumerable avataras, and no one can count them: one might count the stars in the sky, the grains of sand on earth and the drops of rain over many births and kalpas, but not Shiva's avataras. Still, as far as his understanding went he would tell what he had heard. Sharabha's divine deeds signify supreme prosperity.
When you cursed Jaya and Vijaya, Nandi told Sanatkumara, those two became sons of Kashyapa and Diti: Hiranyakashipu the elder and powerful Hiranyaksha the younger. Earlier Brahma had asked Vishnu to save the earth, which he did in boar form, killing Hiranyaksha. Hiranyakashipu loved his brother more than his own life, and on hearing he was killed grew furious at Hari. He tormented himself with austerities for ten thousand years and, pleasing Brahma, got a boon that no one Brahma had created could kill him. He went to the city of Shonitapura, challenged all the gods, brought the three worlds under him and enjoyed a thornless kingdom. He slaughtered gods and rishis, destroyed every dharma and oppressed brahmanas. His son Prahlada was devoted to Hari, and when Hiranyakashipu showed special enmity toward him, Hari became his enemy. At evening Vishnu burst out of a pillar in the assembly hall in the angry form of Nrisimha, half lion and half man, fierce in every way, blazing, causing great fear and terrifying the best daityas. Killing daityas then, Nrisimha fought a terrible battle with Hiranyakashipu, which raged for a muhurta, fierce and frightening and making hair stand on end. At evening, while the gods watched from the sky, Nrisimha, Rama's lord, dragged the bull among daityas to the threshold, set him on his lap and tore open his belly with his claws, an extraordinary sight, as the heaven-dwellers watched. When Hiranyakashipu was killed by Vishnu as Nrisimha, the universe, especially the gods, returned to its natural state. The gods' drums sounded. Seeing Hari's wonderful form Prahlada was amazed, and Lakshmi too.
But though the daitya lord was dead, the gods did not find great happiness. Blazing Nrisimha did not withdraw, and the whole universe was again agitated by him. The miserable gods wondered what would happen now, and, frightened, stayed far off, with Brahma foremost, agitated by Nrisimha's blazing rage. To pacify Hari they sent Prahlada near him. When all begged him, Prahlada approached and Nrisimha, ocean of compassion, clasped him to his breast. Though his heart cooled, the blaze of rage did not recede. When the rage of the half-man half-lion did not subside, the miserable gods went to Shankara for refuge, Brahma and the others and the sages praising Shankara, the cause of happiness in the worlds. The gods said: lord of the gods, Mahadeva, kind to those who take refuge, save us; we bow to you, Sadashiva. Whenever hardship came before you saved us. When the ocean was churned and the gods divided the jewels, you, Shambhu, took the poison, saved us, and became known as Nilakantha; had you not drunk it, everything would have been ashes. Whenever there is misery and your name is spoken all sorrows melt away. Now they were suffering from the blaze of the half-man half-lion, and were sure he could pacify it. So the gods praised Shankara, kind to his devotees. Pleased, the supreme lord freed them from fear and said: Brahma and all the gods, go back to your homes; I grant you freedom from fear. I calm every misery, that is my vow, and anyone who takes refuge in me has all his sorrows destroyed. I love one who takes refuge in me more than my own life. Hearing this the gods were glad, remembered Shankara happily and returned where they had come from.
Retold in our own words from Bibek Debroy's English translation of the Shiva Purana (Penguin Classics). Names, numbers and the order of events follow the source.